Weekly Market Update - 28 March 2016

Market Outlook 

Equity Market Outlook

• There was some market consolidation last week. This was not surprising given the strong rally in the previous few weeks.
• We expect foreign inflows to continue due to political stability and economic restructuring.

Fixed Income Outlook

• Hawkish comments from Fed policymakers caused the Malaysian Government Securities (MGS) market to trade softer and ringgit to weaken towards the end of the week. Yields rose by 1-3 bps across the curve. However, the new 10-year Government Investment Issues (GII) auction was well received, garnering a bid-to-cover ratio of 3.2x.
• In its annual report released last week, Bank Negara expects a moderate Gross Domestic Product (GDP) growth of 4-4.5% and an inflation of about 2.5-3.5% in 2016. The monetary policy will remain supportive of sustainable growth in the coming year.

Source: Lipper for Investment Management, as at 25 March 2016. Past performance is not necessarily indicative of future performance. 

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